Insights from the ground: A qualitative investigation of retailer perspectives of the challenges and opportunities in the legal cannabis market in Newfoundland and Labrador, Canada.

Abstract

The legalization of recreational cannabis in Canada has resulted in varying regulatory and market environments across provinces and territories. These differences shape how retail markets develop and how retailers perceive their opportunities, challenges, and roles in advancing public health objectives. In Newfoundland and Labrador (NL), cannabis retail operates within a distinctive framework shaped by centralized distribution, licensing requirements, and pricing regulations. This qualitative study explores how licensed and prospective retailers perceived the factors influencing the cannabis retail market in NL. Semi-structured virtual interviews were conducted with nine licensed and nine prospective cannabis retailers in NL. A thematic analysis, using Wright-Brown et al.'s Comprehensive Cannabis Retail Framework and Ritchie and Spencer's framework analysis, was conducted. Both deductive and inductive coding were applied to identify framework-aligned and emergent themes. Licensed retailers reported challenges such as restrictive advertising rules, high taxation, and supply chain inefficiencies, which they viewed as constraints on profitability and growth. At the same time, access to quality products, positive customer relationships, and informal mentorship networks were seen as enablers of success. Prospective retailers identified high licensing fees, limited access to opportunities, and financing difficulties as significant barriers to entering the legal market. This study highlights how NL's cannabis retail system, designed to balance public health protection with market development, may inadvertently limit participation and business sustainability. The study illustrates how regulatory design can shape retailer experiences and market dynamics, underscoring the need to assess whether current regulations are achieving their intended outcomes. While focused on NL, these findings offer valuable insights for other jurisdictions with similar regulatory models, emphasizing the importance of aligning policy design with retailers' experiences to foster a more inclusive, sustainable, and public health-oriented cannabis retail sector.